(c) ADJUSTMENT/ABATEMENT FOR ENGINE EVENT OF LOSS: If
 following an Engine Event of Loss the maintenance status
 for the replacement Engine (pursuant to Clause 8.13(a))
 is such that the Engine LLP Supplemental Rent and Engine
 Supplemental Rent held with respect to the Engine which
 suffered the Engine Event of Loss differs from that
 which corresponds to the maintenance status of such
 replacement Engine, Lessor shall calculate the amount of
 the adjustment to the amounts of Engine LLP Supplemental
 Rent and Engine Supplemental Rent in respect of such
 Engine required so that the amounts then held correspond
 to the status of the replacement Engine. Any adjustment
 which requires an increase in the amounts held as Engine
 LLP Supplemental Rent and the Engine Supplemental Rent
 shall be promptly paid by Lessee to Lessor in cash. Any
 adjustment which

 49


 requires a decrease in amounts held as Engine LLP
 Supplemental Rent and/or Engine Supplemental Rent shall
 be effected, so long as no Default or Event of Default
 is then in existence by Lessor abating Lessee's payment
 of Engine LLP Supplemental Rent and/or Engine
 Supplemental Rent in respect of such replacement Engine
 until the amounts of Engine LLP Supplemental Rent and/or
 Engine Supplemental Rent correspond to the status of the
 replacement Engine.

 (d) LESSOR'S PROPERTY: Lessee acknowledges and agrees that
 Supplemental Rent is additional rent for the leasing of
 the Aircraft and not cash collateral or other collateral
 security for Lessee's maintenance obligations under this
 Agreement. Once paid all Supplemental Rent is the
 property of Lessor, it is not refundable to Lessee under
 any circumstances whatsoever and Lessee has no interest
 therein whatsoever. The foregoing is subject to Lessor's
 obligations under and in accordance with Clause 7.4 or
 11.1(b) of this Agreement.